United Plantations 2Q net profit rises 34.1pct to RM249.38mil
Revenue also increased by 16.9 per cent to RM638.42 million from RM546.08 million previously, the crude palm oil (CPO) and coconut producer said in a filing with Bursa Malaysia.
For the six months ended June 30, 2025, United Plantations recorded a higher net profit of RM412.64 million compared with RM318.81 million, while revenue improved by 13.0 per cent to RM1.16 billion against RM1.02 billion previously.
"Higher CPO and palm kernel (PK) production, coupled with higher prices, have increased the group's revenue," it said.
Furthermore, the group's net interest income of RM10.2 million in the first half-year was 21.5 per cent lower than the RM13.0 million recorded in the previous year's corresponding period as a result of lower deposits.
United Plantations said CPO and PK production increased by 13.8 per cent and 20.5 per cent , respectively.
The average selling price of CPO rose 5.6 per cent to RM4,361 per metric tonne while that of PK jumped 46.5 per cent to RM3,312 metric tonne.
Meanwhile, CPO's cost of production was 5.1 per cent lower at RM1,268 per metric tonne while PK's cost of production was down 7.6 per cent at RM329 metric tonne compared with the first six months of last year.
Looking ahead, United Plantations said weather developments will continue to be important to monitor, especially with the approach of the peak production months of July to September.
With export volumes showing signs of slowing, there is a risk that rising output could lead to a buildup of stocks and renewed pressure on prices, it said.
"However, based on the performance to date, a stable labour situation and the company's strong commitment to securing its budgeted crop, the board of directors expects that the results for 2025 will be satisfactory," it added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
33 minutes ago
- The Star
Bursa ends flat amid cautious sentiment
KUALA LUMPUR: Bursa Malaysia ended almost flat yesterday, with the key index slipping 0.08%, reflecting cautious market tone amid mixed domestic developments and bucking the broader regional trend. At 5pm, the FBM KLCI erased 1.27 points to end at 1,524.59 from last Friday's close of 1,525.86. The benchmark index was 0.60 of a point better at 1,526.86 at the opening bell and moved between 1,520.02 and 1,526.46 throughout the trading session. The market breadth was negative, with 607 losers overtaking 342 gainers and 504 counters unchanged, while 1,014 were untraded and seven suspended. Turnover improved to 3.5 billion shares worth RM2.68bil from 3.18 billion shares worth RM2.81bil last Friday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said upbeat sentiment was seen across Asia, however, selling pressure continued to persist across emerging markets. 'We believe investor funds are rotating into Hong Kong and Chinese equities. Locally, ongoing foreign and retail selling reflects a cautious wait-and-see sentiment. Nonetheless, the FBM KLCI is well supported above the 1,520 level. 'We reckon the selldown offers an opportunity to bargain hunt stocks at lower levels, hence we expect the index to trend within the 1,510 to 1,540 level for the week,' he added. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan opined that investors are assessing news of the Malaysian Anti-Corruption Commission probe, launched last Thursday in connection with alleged corruption involving a data centre project tender. 'The impact of the investigation appears confined to selected counters, with no sign of broader market contagion. 'This was underscored by the market performance where stocks linked to data centres, telecommunications and industrials ranked among the leading gainers, indicating that investor sentiment towards these sectors remains fundamentally resilient,' he added. Mohd Sedek also said that investors are expected to adopt a selective stance, reassessing exposures within the data centre and technology sectors rather than engaging in broad-based selling. Of the heavyweight stocks, Malayan Banking Bhd and Tenaga Nasional Bhd were flat at RM9.52 and RM13.78, Public Bank Bhd was one sen lower at RM4.30, CIMB Group Holdings Bhd rose one sen to RM6.52 and IHH Healthcare Bhd advanced six sen to RM6.63. Among the most active stocks, Sunway Construction Group Bhd was 49 sen lower at RM5.49, NexG Bhd gained one sen to 50.5 sen, Pharmaniaga Bhd advanced 6.5 sen to 22 sen while Tanco Holdings Bhd lost half-a-sen to 90.5 sen. The ringgit extended its gains against the US dollar at yesterday's close, as the greenback struggled to appreciate amid political uncertainties in Japan, said an analyst.
The Star
43 minutes ago
- The Star
Green Packet appoints Shahul as MD and CEO
PETALING JAYA: Green Packet Bhd has appointed former Human Resource Development Corp chief executive Datuk Shahul Hameed Shaik Dawood as its managing director and group chief executive officer. In a filing with Bursa Malaysia, Green Packet said Shahul Hameed, 51, is an accomplished corporate leader with over 30 years of experience spanning both the public and private sectors, with core expertise in business transformation, digitalisation and human capital development. He previously served as the CEO of HRD Corp under the Human Resources Ministry from 2020 to 2025, where he was instrumental in mobilising one of the country's most impactful talent development agendas – spanning millions of Malaysians and involving stakeholders from industry, academia, and international bodies.
The Star
an hour ago
- The Star
United Plantations focused on higher yields
PETALING JAYA: United Plantations Bhd is working towards an improvement of its palm oil yields and productivity. The company said in its latest quarterly report that it has embarked on mechanisation initiatives and replanting of older, less productive oil palm stands with its latest in-house high yielding planting breeds and materials. This is an important initiative amid various industry challenges that the sector is up against, it said. 'The tireless efforts by management to support high yields are viewed as essential in maintaining competitiveness amidst rising labour, energy and input costs. 'Looking ahead, we remain mindful of the challenges that may arise in the remaining part of the year,' the company said. It still anticipates to deliver a satisfactory set of results for 2025. Apart from this, United Plantations said the weather will play a key role in determining the direction of the palm oil sector – as the peak production months of July to September approaches. 'With export volumes showing signs of slowing, there is a risk that rising output could lead to a buildup of stocks and renewed pressure on prices,' it said. Prices will also be influenced by the global trading environment in the midst of the trade war and focus on tariff barriers, it said. While Indonesia's ramp-up in biodiesel production is helping to support palm oil prices, concerns persist regarding the pace and effectiveness of the B40 Biodiesel Mandate, as logistical and economic challenges may hinder its full implementation, it noted. In its second quarter ended June 30 of the financial year 2025 (FY25), United Plantations' net profit rose by 34.1% year-on-year (y-o-y) to RM249.38mil. Its revenues rose by 16.9% y-o-y to RM638.42mil for the latest quarter driven by the plantation and refinery segments. Earnings per share rose by 34% y-o-y to 40.08 sen. Commenting further, the company said revenues for its plantation segment had risen on higher production and prices for crude palm oil (CPO) and palm kernel (PK). 'CPO and PK production increased by 22.2% and 23.9% respectively. 'PK average selling price was higher marginally by 1.2% whereas CPO average selling price was lower by 3.3%,' it said. Plantations segment profits were also positively influenced by lower manuring costs, it said. Meanwhile, it said profits in the refinery segment had seen a significant improvement on higher palm oil sales volumes and reversal of hedging losses experienced during the preceding quarter. The company said its refinery segment's pre-tax profit includes the equity-accounted share of results from its joint venture, Unifuji Sdn Bhd. The joint venture recorded a profit before tax of RM24.6mil and contributed a share of net profit of RM10.9mil in the current quarter to the group. Unifuji had seen an improvement in sales volumes, better margins and stronger foreign-exchange hedging gains in the current quarter, it said.
